Nano Dimension Reports Losses in Q2 as Company Continues to Build Future Business

Nano Dimension, a leader in the field of 3D printed electronics, ended the second quarter of 2017 with $16,495,000 (NIS 57,666,000) in cash available, with a total loss for the quarter for $5,000,000 (NIS 17,481,000). As a result the NASDAQ traded stock is suffering (see real time chart below) in spite of a very positive long terms business outlook as highlighted by the many distributive partnerships signed during the first fiscal half.

“During the second quarter, we reached exciting milestones and recently announced that we launched our early-access commercial sales. We also raised capital from leading Israeli institutional investors. The capital raised will fuel the sale and production foundation, as we maximize efficiency of our printers and transition to commercial sales,” commented Amit Dror, Nano Dimension’s CEO. Our recently announced collaboration with several distributors in the United Kingdom, Canada and Australia, in addition to our U.S. distributor, will facilitate the global penetration of the DragonFly 2020 3D Printer. As we progress through the third and fourth quarters of the year, we expect to leverage our sales, marketing and production infrastructure as we grow sales.”

Second Quarter 2017 Financial Results

Total revenues for the second quarter of 2017 were $150,000 (NIS 523,000), compared to $118,000 (NIS 430,000) in the first quarter of 2017 and zero in the second quarter of 2016. The increase in revenues compared to the first quarter of 2017 is attributed to longer periods of customer use compared to the previous quarter.

Research and development (R&D) expenses for the second quarter of 2017 were $3,212,000 (NIS 11,230,000),
compared to $2,508,000 (NIS 9,112,000) in the first quarter of 2017 and $503,000 (NIS 1,933,000) in the second quarter of 2016. The increase compared to the first quarter of 2017 resulted primarily from an increase in options expenses and in payroll and related expenses. The increase compared to the second quarter of 2016 is mostly a result of the cessation of the capitalization of development cost in the fourth quarter of 2016.
The R&D expenses for the second quarter of 2017 are presented net of government grants in the amount of
$108,000 (NIS 376,000).

General and administrative (G&A) expenses for the second quarter of 2017 were $1,490,000 (NIS 5,209,000),
compared to $1,270,000 (NIS 4,612,000) in the first quarter of 2017 and $1,197,000 (NIS 4,605,000) in the second quarter of 2016. The increase compared to the first quarter of 2017 resulted primarily from an increase in professional services expenses. The increase compared to the second quarter of 2016 resulted primarily from an increase in payroll and related expenses.

Net loss for the second quarter of 2017 was $5,000,000 (NIS 17,481,000), or $0.1 (NIS 0.33) per ordinary share, compared to $4,489,000 (NIS 16,306,000), or $0.09 (NIS 0.33) per ordinary share, in the first quarter of 2017 and $1,664,000 (NIS 6,401,000), or $0.04 (NIS 0.17) per ordinary share, in the second quarter of 2016. The increase compared to the first quarter of 2017 resulted primarily from an increase in expenses related to the issuance of options to R&D employees and payroll and related expenses. The increase compared to the second quarter of 2016 is mainly attributed to the increase in R&D expenses as described above.

Six Months Ended June 30, 2017 Financial Results

Total revenues for the six months ended June 30, 2017 were $273,000 (NIS 953,000), compared to zero in the six months ended June 30, 2016. The fourth quarter of 2016 was the first quarter that Nano Dimension generated revenues.

Research and development (R&D) expenses for the six months ended June 30, 2017 were $5,819,000 (NIS 20,342,000), compared to $930,000 (NIS 3,575,000) in the six months ended June 30, 2016. The increase is mostly a result of the cessation of the capitalization of development cost in the fourth quarter of 2016. The R&D expenses for the six months ended June 30, 2017 are presented net of government grants in the amount of $129,000 (NIS 452,000).

General and administrative (G&A) expenses for the six months ended June 30, 2017 were $2,809,000 (NIS 9,821,000), compared to $2,349,000 (NIS 9,034,000) in the six months ended June 30, 2016. The increase resulted primarily from an increase in payroll and related expenses.

Net loss for the six months ended June 30, 2017 was $9,665,000 (NIS 33,787,000), or $0.19 (NIS 0.66) per ordinary share, compared to $3,417,000 (NIS 13,142,000), or $0.09 (NIS 0.35) per ordinary share, in the six months ended June 30, 2016. The increase is mainly attributed to the increase in R&D expenses as described above.

Balance Sheet Highlights

Cash totaled $16,495,000 (NIS 57,666,000) as of June 30, 2017, compared to $12,379,000 (NIS 47,599,000) on December 31, 2016. The increase compared to December 31, 2016 reflects the proceeds received from the private placements that occurred in the second quarter of 2017, less the cash used during the first half of 2017. Shareholders’ equity totaled $25,573,000 (NIS 89,406,000) as of June 30, 2017, compared to $19,302,000 (NIS 74,218,000) as of December 31, 2016.